DRBA Approves Wage Freeze

NORTH CAPE MAY — Delaware River and Bay Authority (DRBA) Commission unanimously approved its 2009 budget of $70.2 million Tuesday March 17 for the Delaware Memorial Bridge, the Cape May – Lewes Ferry, Food Services, Three Forts Ferry Crossing, Police and Administration which includes a wage freeze.
Commissioners also authorized a budget of $5.9 million to operate DRBA’s five regional airports.
The 2009 operating budget total of $76.2 million represents a 1.8% increase over its current spending plan.
According to Victor A. Ferzetti, DRBA’s Chief Financial Officer, the spending plan freezes all wages at 2008 levels and eliminates 14 funded, vacant positions.
“Because of the recession and high fuel prices, fewer vehicles used the Delaware Memorial Bridge or traveled aboard the Cape May – Lewes Ferry system in 2008, which negatively impacted our overall revenues by approximately $7 million,” said Ferzetti. “The proposed budget is both prudent and responsible given the current difficult, challenging economic conditions, which are expected to continue for the foreseeable future.”
As a result of the wage freeze and the salaries and benefits associated with the eliminated positions, the agency will save more than $1.6 million. Through negotiations with suppliers and cost management initiatives, DRBA was also able to reduce costs associated with group medical coverage and insurance premiums, saving approximately $625,000 compared to the fiscal year 2008 budget. DRBA also trimmed its community contributions by nearly $100,000.
DRBA also funded an additional 20 percent of its Other Post Employment Benefits (OPEB) liability compared to the 2008 spending plan. In 2009, DRBA has budgeted $2.2 million, which represents 40% of the OPEB liability that will be funded over a five-year period.
“The Governmental Accounting Standards Board (GASB) standard addresses how state and local governments should account for and report their costs and obligations related to post employment healthcare and other non-pension benefits, commonly referred to as OPEB,” Ferzetti said. “While this GASB accounting rule does not require the funding of these future liabilities, the DRBA has developed a proactive and prudent financial plan to account for and fund our future obligations. If you deduct the additional funding of these liabilities, the budget increase is 0.3%.”
The budget allocates additional resources for fuel costs and bridge painting.
In 2009, the DRBA estimates it will pay $4.2 million for vessel and vehicle fuel, an increase of 34.1% compared to 2008. Delaware Memorial Bridge painting costs are expected to climb $150,000 to $1 million next year.
In 2009, the DRBA is expected to generate about $105 million, excluding its airport operations and will make debt service payments of more than $22 million. More than 75 percent of DRBA’s revenues are derived from tolls paid at the Delaware Memorial Bridge.